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Its great to produce high returns, as long as you don't swing back and forth. Setting high goals also leaves room for larger losses. Its ok to produce high returns, but not to plan on them or to target them. Plan conservatively, with your target return and draw down to be in the 3-7% window. If your returns end up greater than that, fantastic, but don't let your drawdawns go up as well.
If you put on a trade, and you think the proper stop loss for that position is very close, you can leverage your position more.
In proprietary trading there are a few rules.
1. Isolate the trade....what are you looking for (target take profit)
where are you wrong (firm stop loss)
how much do you want to risk on the trade
These 3 questions will let you determine your position size.
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